MOSCOW, Mar 14 (PRIME) -- The Russian stock market is likely to open lower on Tuesday because it will most likely follow the lead of the foreign stock bourses and oil prices, analysts said.
“The MOEX Russia Index fell by 0.3% to 2,269 on Monday. We expect pressure on the Russian shares to persist at the start of trade today, which will be supported by worsening situation on the external stock floors and a fall of the energy market. Given the circumstances, the MOEX Russia Index may test the level of 2,250 during the trading session,” Bogdan Zvarich, senior analyst at financial platform Banki.ru, said.
The leading Asian bourses lost up to 2.4% on Tuesday morning, while the futures for the U.S. stock indices gained 0.3% after a fall on Monday. The Brent oil price contracted by 1.2% to U.S. $79.8 per barrel, Zvarich said.
Yekaterina Krylova, managing expert at Promsvyazbank, said that the fall of the Brent oil price was triggered by the financial sector’s risks connected to the recent failures of several U.S. banks, while the anti-crisis measures suggested by U.S. President Joe Biden disappointed the investors.
“We expect trading in Russia to start with a fall of 0.2–0.8% of the MOEX Russia Index in the range of 2,250–2,265. The levels of 2,240 and 2,230 will act as the closest support, while 2,280 and 2,290 will become the resistance. A significant worsening of the external background in the morning creates conditions for the MOEX Russia Index to open with a noticeable fall,” Vitaly Manzhos, senior risk manager at Algo Capital, said.
In the second half of the day, investors would pay attention to the consumer price index that the U.S. is to release. The U.S. inflation is an important factor that the U.S. Federal Reserve System considers while defining its mid-term monetary policy, Manzhos said.
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